How to Use AI to Improve Customer Experience in Banking

How to Use AI to Improve Customer Experience in Banking

Systems and process are getting smarter globally. Cheers to the promising Artificial Intelligence (AI) model, the banking industry can raise their process to be stronger and more intelligent to serve its customers in a better way. AI gives a more protected banking environment—endowing customers with help and understandings that give them more control and security.

Tech-savvy millennials expect banks to deliver seamless experiences, and with the help of AI-enabled mobile-banking apps, they can look forward to an enhanced personal, contextual, and predictive experience.

Strong and fast processing needs, the advent of mobile technology, data availability, and creation of open-source software offer AI, a massive opportunity in the banking sector as it brings the control of advanced data analytics to battle fraudulent transactions and improve compliance. It can also give real-time services with a personalized experience that customers can easily relate to, and which will appropriate and responsive to be quickly adopted and help customers in many ways.

Below are the few AI solutions that the banking industry can pursue to create customer value. Yes, this is not a complete list of all the AI advantages the banking industry can experiment with, but I would say these are some of the solutions, which can help.


Chatbots & personalized customer service to enhance customer experience:

As the world is being digitalized, and automation is taking place of manual interaction which can increase a less personal contact with customers. However, increased AI usage does not lead less personalized experience, even, it can help to improve client satisfaction, increase efficiency and preserve customer loyalty in numerous ways.

As per the survey by the National Business Research Institute, over 32 percent of financial institutions use AI by the means of voice recognition and predictive analysis. Banks are using AI technology for improving the customer experience by giving it a personalized touch.

Bank can provide financial guidance to their customer through voice and text messages. Which can be available 24/7 and can allow banks to offer clients to have access to their services at any time without spending more money on the customer service desk.

AI Enable bots can help to ensure that, over time, less complicated or general queries have pre-generated responses.

Transactional and other data sets can be tracked to understand a customer’s behavior and preferences that can help to enhance their experience.


Accelerate the process and reduce the downstream error through process automation:

Banks have lots of activities on a daily basis that need to be done precisely. Many activities take a lot of time and efforts from the employees and there is also coincidental of inaccuracy can happen in these activities, so with the AI,

It is now possible to boost the accuracy of new-bank-account-opening requests and transactional requests e.g. signature getting replaced with thumb authentication for AEPS transactions, and get rid of any fraudulent errors, and hence improving overall system quality and reliability.

Another example where all existing customer forms are digitized using AI where systems evaluate documents and extracts data in much less time than it would take a human. You can say 360,000 hours of manual work in just a sec that save bank’s employees, the countless hour which can be used to handle the other customer-oriented operations.

Bank can build parameter identifies/recognition system, which can identify important information /parameter from loan applications, forms, and receipts. It can reduce the time identifying or recording customer information and cut the processing time, which can help the customer and improve customer service.


Categorize fraud:

Banks should be good in providing secure and rapid transactions.AI can be designed to detect the fraud in the transactions based on a predefined set of rules. In addition, via behavior analysis of customer’s account mobile app can find out any suspicious activity. For example, any online transaction of a huge amount from the customer’s account that has a history of small transactions can be figured out instantly as an outlier and reported as a fraudulent transaction.

As we witness a rapid rise in the instances of cybercrimes in the recent years, AI-enabled fraud detection can offer a helping hand in preventing such attempts. Therefore, for the banking industry, AI has a great scope in the domain of cybersecurity.


Offer personalized planning and wealth management services:

Integrating AI-enabled features in Banking app can help banks to show their services, offers insights in line with user’s behavior. The app handles the strategy and communication part by analyzing the user’s behavior data. Banks can provide online wealth management services by integrating AI advancements into the app.

When it comes to personalized planning, It is really easy for banks to assist users in their financial planning with AI strategies. For example, if the user wants to buy a new car, the mobile banking app can help or guide the user with a budget and other related details based on current expenditure and income.


Effective decision making:

Cognitive systems that think and respond like human experts, provide optimal solutions based on available data in real-time. These systems keep a repository of expert information in its database called knowledge database. Bankers use these cognitive systems to make strategic decisions.

By getting datasets for customer’s behavior and its preferences, AI enables tools and system can help the bank in speed up the operations/process and can increase the connectivity with customers, provide a modern and innovative way to personalize the user experience and better understanding of customer behavior.

AI and machine learning models can be used for different areas of the bank such as underwriting, pricing, cash distribution, and debt collection, these are just a few use cases of AI in banking, but there are many ways AI can be explored in the industry for enhancing customer service.